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Research and Markets: Robust Economic Development in China Revs up its Passenger Car Market in 2008

DUBLIN--Research and Markets (http://www.researchandmarkets.com/research/f34141/strategic_review_o) has announced the addition of Frost & Sullivan's new report "Strategic Review of Chinese Passenger Car in China in 2008" to their offering.

This research service reviewed the Chinese passenger car market in 2008. To illustrate drivers, restraints, and challenges for the market. The report gives a detailed analysis of each segment of passenger cars including sedan, SUV, MPV and mini bus and evaluates each OEMs sales performance. The report also provides a scenario analysis to forecasts what is going to happen in next 7 years in Chinese passenger car market. The report also posted 6 emerging niche market and technology development in Chinese market.

This Frost & Sullivan research service titled Strategic Review of Chinese Passenger Car in China in 2008 provides market size, competitive analysis, and technology trends. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: sedan, sports utility vehicle (SUV), multi-purpose vehicle (MPV), and mini bus.

Riding on the vigorous and sustained growth of the Chinese economy, the automotive market in the country is all set to graduate to the pole position from its current second spot in the world rankings in the early part of the next decade. China's annual gross domestic product (GDP) growth rate remained over 10 percent from 2003 to 2007 and is likely to grow steadily at around 7 percent over the next two years, according to the World Bank. However, this resilience to the global economic slowdown and a string of natural disasters in 2008 have not proved sufficient to insulate the citizens from the plunge in China's stock market, falling estate prices, and company layoffs. Customers are more reluctant to spend, shrinking the demand, and thereby, profits for car manufacturers. To cope with the lack of rapid growth, Chinese automakers, especially independent brands, should implement cost-saving strategies and rethink their capital investment plan.

Manufacturers can try to stay ahead of the curve by introducing models and advanced powertrain technologies. The new technologies offer benefits of emission reduction, fuel saving, and increased performance, making it attractive to potential customers. Technology development is accelerated by increasing supplier R&D localization and transformation of localization strategies. Manufacturers will also be pleased that the continuing urbanization of China has caused a rise in the per capita income, and thereby, the spending power of the people living in urban areas. "In some cities like Shanghai and Beijing, the per capita GDP reached more than $8,000, resulting in a substantial increase in the disposable income of the people," says the analyst of this research. "Hence, consumers are expected to spend more, particularly on capital goods such as vehicles." In fact, the total sales of the Chinese passenger car is anticipated to cross 100 million in unit shipment in 2015.

The passenger car market will also be greatly aided by the shifting of the automotive industry to the developing nations in Asia. The competition is expected to become increasingly intense as American series automakers are being challenged by German and Japanese automakers, and eventually, they are expected to lose market share to their Chinese counterparts. Participants can look to further expand in the market by exploring fresh sources of revenue. "For instance, various new niche markets are emerging due to the diversity in customer demands," notes the analyst. "The market will get another boost through the Chinese Government's auto industry revitalization policy, which is likely to fuel consolidation at the auto group level through mergers and acquisitions."

Key Topics Covered:

  • Executive Summary
  • Top Five Regional Automotive Trends
  • Industry Challenges
  • Vehicle Sales and Production Trends
  • New Niche Vehicle Market
  • Technology Trends
  • Appendix

For more information visit http://www.researchandmarkets.com/research/f34141/strategic_review_o